Item - 2026.EC27.3

The Economic and Community Development Committee recommends that:

1. City Council adopt the Inclusive Economic Development Framework, as outlined in Attachment 1 to the report (March 24, 2026) from the General Manager, Economic Development and Culture, and the Executive Director, Social Development as part of the implementation of Sidewalks to Skylines: A 10‑Year Action Plan for Toronto’s Economy (2025–2035).

2. City Council request the General Manager, Economic Development and Culture to include a summary of progress toward inclusive employment and entrepreneurship outcomes within Sidewalks to Skylines: A 10‑Year Action Plan for Toronto’s Economy (2025–2035) annual progress reports.

3. City Council request the Chief Planner and Executive Director, City Planning, to work with Economic Development and Culture, Social Development, and other relevant City divisions, as part of new or updated Secondary Plans, to identify opportunities to advance inclusive economic development through land use, commercial space, and related policies that support local employment, diverse business activity, and improved access to jobs.

4. City Council request the Executive Director, Transit Expansion, in consultation with the General Manager, Economic Development and Culture, and the Executive Director, Social Development, to consider approaches to monitor and address the impacts of transit expansion projects on the Toronto labour force, including promotion of employment opportunities and other community benefits associated with future City-led projects, in alignment with the Inclusive Economic Development Framework.

5. City Council request the General Manager, Economic Development and Culture to:

a. leverage the Sidewalks to Skylines interdivisional working group to track relevant external partnerships and how the Inclusive Economic Development Indicator Development Tool was used by City Divisions, identifying good practices and lessons learned; and

b. report back through Sidewalks to Skylines annual progress reports and to continue to review potential additional inclusive economic indicators to be added to the City of Toronto Economic Dashboard to monitor whether inclusive economic development objectives are being achieved.

Sidewalks to Skylines: A 10-Year Action Plan for Toronto’s Economy (2025-2035), adopted by City Council in November 2024, identifies economic polarization as a key challenge. It recognizes that attracting investment and sustaining economic growth requires a different approach—one that ensures that residents and workers across the city can participate in, and benefit from, economic growth. To advance this shift, Action #4 directs the City to collaborate with external partners to reduce barriers to economic inclusion. This was further complemented by direction in EC17.2 – A Partnered Approach to Inclusive Economic Development in December 2024 for the City to work with partners to develop an Inclusive Economic Development (IED) Framework.

This report presents the IED Framework, co‑developed over one year with an external IED Working Table representing different sectors and organizations. The IED Framework consists of definitions and principles previously approved by Council, a set of indicators of an inclusive economy, and a clear scope for City action:

- Inclusive employment and sector pathways

- Inclusive entrepreneurship and ownership

The IED Framework aims to support alignment, coordination, and accountability across existing and new City initiatives while reinforcing Council’s direction that inclusive economic development be embedded within the City’s broader economic strategy, Sidewalks to Skylines. Progress on the IED Framework will be tracked in Sidewalks to Skylines annual reporting, including the forthcoming Year One update report in Q2 2026. The IED Framework was developed through a collaboration among Economic Development and Culture (EDC); Social Development (SD); Toronto Employment and Social Services (TESS); City Planning; Purchasing and Materials Management (PMMD); People and Equity (P&E); Parks and Recreation (P&R); Children’s Services; Housing Secretariat; and Environment, Climate & Forestry (ECF).